AUTHOR
Frändberg, Anna; Kjellman, Carolina

DATE
2004-06-18

DEPARTMENT
Business Administration and Social Sciences / Economics

SUMMARY
The rapid development in thechnology, the liberalization of international trade and the intense competition in the international market have resulted in enhanced globalization. It has become more common for organizations to take part in the internationlaization. When companies make the strategic decision to go international a strategy for its market expansion is needed. This strategy consists of a plan concerning how the company aims at expanding in the international market. The two main market expnasion strategies are market concentration and market diversification. Organizations that are choosing a market concentration strategy are focusing on gaining a large share of the market in a few countries. Companies choosing a market diversification strategy are on the other hand focusing on gaining a smaller share of the market but in a larger number of countries.

This study consists of an explanation of the factors influencing organizations' choice of market expansion strategy. The factors influencing companies’ choice of market expansion strategy can be divided into company, product, market and marketing factors. Our aim with this study was to gain a deeper understanding of the factors influencing small companies’ choice of market expansion strategy. In order to fulfill this purpose we have chosen to conduct a case study of a small Finnish company that could provide us with valuable information within this area.

The result of this study is that the factors influencing the choice of market expansion strategy varies. It is mainly the situation facing a firm that affects the choice of strategy. This situation consists of a combination of company, product, market and marketing factors.

ISSN 1404-5508 / ISRN LTU-SHU-EX--04/168--SE / NR 2004:168